More Americans to shop with tax refunds this year

Washington – While many Americans plan to use their tax refunds to lower debt or boost savings, the percentage who expect to splurge with the money increased slightly this year.

According to a National Retail Federation survey conducted by BigResearch, 12.5% of people expecting a refund plan to make a major purchase such as a new television, furniture or car, up from 11.0% last year.

But credit obligations remain a concern and 43.9% of Americans expecting a refund will pay down debt. Last year that number was 48.0%. Others will roll the money into savings (40.3%), use it for everyday expenses (28.8%) or go on vacation (10.0%).

“After spending the last year paying down debt or building up a nest egg, Americans are relishing the idea of spending their tax returns,” said Phil Rist, Executive Vice President, Strategic Initiatives. “Consumers focused solely on essential purchases during this economic downturn, and many are ready to treat themselves to something nice for a change.”

The survey found 60.6% of Americans had already filed their taxes by the end of February, with 24.4% planning to file in March and 15.0% in April.